Japan’s Nikkei 225 index rose to a record high on Tuesday, climbing past the 44,000 mark for the first time, as markets cheered stronger-than-expected GDP data and potential policy changes after Prime Minister Shigeru Ishiba’s abrupt resignation.
The benchmark index rose as much as 1.2% to 44,185.7 points on Tuesday, but pared some gains to trade 0.3% higher at 43,768.6 points as of 02:03 GMT.
Nikkei 225 was set for its fourth consecutive day of sharp gains. The broader TOPIX index edged 02% higher.
Data on Monday showed that revised second-quarter gross domestic product expanded at a 2.2% annualized rate, up from an earlier estimate of 1.0%, driven by robust private consumption and contributions from inventory gains.
On a quarterly basis, GDP rose 0.5%, exceeding the initial 0.3% projection.
Investor optimism was further buoyed by Shigeru Ishiba’s resignation, which sparked expectations that his successor may pursue more expansionary fiscal and monetary policies. Political uncertainty, paradoxically, helped lift equities as bets grew that the Bank of Japan would delay further tightening.
LDP heavyweight Sanae Takaichi, a proponent of looser fiscal and monetary policy, and rising figure Shinjiro Koizumi, son of former Prime Minister Junichiro Koizumi, are seen as leading contenders.
Broader market sentiment was also upbeat on news of a U.S.-Japan deal lowering tariffs on Japanese auto exports by mid-September.
Source :
https://www.investing.com/news/stock-market-news/japans-nikkei-hits-record-high-after-pm-ishiba-resignation-strong-q2-gdp-4230420
